In a recent discussion at a networking event I was again asked why a company hasn’t been able to fulfil the potential of its business plan. From new startups setting out, to multi-nationals looking to the next step in their evolution, it seems the challenge remains the same.
The answer often lies in the business plan itself. It is a document which articulates the company’s value, product, and market environment together with financial projections for costs and income. It is clear that there are many assumptions and attributes that need to come together to deliver this summation.
Often steps are missed in the planning process. Before preparing the business plan some solid groundwork is needed to work up a business model summary of target customer segments, channels to market, and partner products that may be needed to best position the business for success. Context is also important, so details of what’s happening in the wider market environment and with potential competitors is foremost. Even when a distinctive product/service is on offer, practical consideration is needed on how the business will distinguish itself to attract, retain and grow its target set of customers.
A key takeaway is that companies should apply some focus on and road-test the business model wherever possible to strengthen the business plan.